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Exploring Big Yellow Group And Two Additional High-Yield Dividend Stocks

Amid a backdrop of increasing optimism in global markets, particularly with the FTSE 100 reaching new highs driven by expectations of interest rate cuts, investors are keenly observing trends that might influence their strategies. In this climate, focusing on dividend stocks like Big Yellow Group can be a prudent approach to potentially secure steady income streams in uncertain times.

Top 10 Dividend Stocks In The United Kingdom

Name

Dividend Yield

Dividend Rating

Record (LSE:REC)

8.52%

★★★★★★

Dunelm Group (LSE:DNLM)

7.72%

★★★★★☆

Keller Group (LSE:KLR)

3.96%

★★★★★☆

DCC (LSE:DCC)

3.31%

★★★★★☆

Plus500 (LSE:PLUS)

6.02%

★★★★★☆

Rio Tinto Group (LSE:RIO)

6.03%

★★★★★☆

NWF Group (AIM:NWF)

3.59%

★★★★★☆

James Latham (AIM:LTHM)

3.03%

★★★★★☆

Hargreaves Services (AIM:HSP)

6.43%

★★★★★☆

Big Yellow Group (LSE:BYG)

3.98%

★★★★★☆

Click here to see the full list of 53 stocks from our Top Dividend Stocks screener.

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Let's take a closer look at a couple of our picks from the screened companies.

Big Yellow Group

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Big Yellow Group, a leading self-storage provider in the UK, operates with a market capitalization of approximately £2.23 billion.

Operations: Big Yellow Group generates its revenue primarily through the provision of self-storage and related services, totaling £194.58 million.

Dividend Yield: 4%

Big Yellow Group maintains a stable dividend, with a yield of 3.98%, supported by a payout ratio of 75.9% from earnings and 82.1% from cash flows, indicating sustainability. Despite its dividends growing over the past decade, the current yield is modest compared to top UK dividend payers. The company's Price-To-Earnings ratio at 11.9x is favorable against the broader UK market average of 16.5x, but future earnings are expected to decline by an average of 4.1% annually over the next three years.

LSE:BYG Dividend History as at May 2024
LSE:BYG Dividend History as at May 2024

Mears Group

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Mears Group plc operates in the United Kingdom, offering outsourced services to both public and private sectors, with a market capitalization of approximately £369.89 million.

Operations: Mears Group plc generates revenue primarily through three segments: Management (£543.35 million), Development (£2.70 million), and Maintenance (£543.28 million).

Dividend Yield: 3.3%

Mears Group's dividend profile is mixed, with a history of both growth and volatility over the past decade. The company's Price-To-Earnings ratio stands at 10.7x, below the UK market average of 16.5x, indicating potential value. Dividends are well-covered by earnings and cash flows, with payout ratios of 39.5% and 11.3%, respectively. However, its dividend yield at 3.31% trails behind the top quartile in the UK market (5.82%). Recent financials show an increase in sales to £1.09 billion and net income to £35.2 million for FY2023, alongside a proposed dividend increase reflecting confidence in future prospects.

LSE:MER Dividend History as at May 2024
LSE:MER Dividend History as at May 2024

Morgan Sindall Group

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Morgan Sindall Group plc is a UK-based construction and regeneration company with a market capitalization of approximately £1.12 billion.

Operations: Morgan Sindall Group plc generates its revenue from several key segments: Fit Out (£1.11 billion), Construction (£966.60 million), Infrastructure (£886.70 million), Partnership Housing (£837.50 million), Urban Regeneration (£185.30 million), and Property Services (£185.20 million).

Dividend Yield: 4.7%

Morgan Sindall Group's recent performance and dividend strategy demonstrate both strengths and challenges. The company reported a significant rise in sales to £4.12 billion and net income to £117.7 million for FY2023, supporting a 15% increase in its final dividend to 78 pence per share. Despite this growth, the dividends have shown volatility over the past decade, with an unreliable track record that could concern conservative investors seeking stable returns. However, with a payout ratio of 44.8% and cash payout ratio of 29.1%, dividends are well-covered by both earnings and cash flows, suggesting sustainability from a financial perspective.

LSE:MGNS Dividend History as at May 2024
LSE:MGNS Dividend History as at May 2024

Turning Ideas Into Actions

  • Investigate our full lineup of 53 Top Dividend Stocks right here.

  • Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.

  • Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Interested In Other Possibilities?

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include LSE:BYG LSE:MER and LSE:MGNS.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com